The company said it expects a roughly 50% slump in 2022 net profit, and admonished investors to be cautious as its valuation is currently much higher than the industry average. 360 Security Technology Co Inc , in response to regulators' queries, said its self-developed ChatGPT-related technology is still at a nascent stage and is used only internally as a productivity tool. It is uncertain about when it can market ChatGPT-style products, and how effective they will be, so "we advise investors to pay attention to market trading risks, decide rationally, and invest cautiously." (Reporting by Samuel Shen and Brenda Goh; Editing by Christopher Cushing)
Messaging: samuel.shen.thomsonreuters.com@reuters.net)) SHANGHAI, Feb 9 (Reuters) - Chinese state media on
Thursday cautioned against risks in chasing ChatGPT-concept
stocks, while artificial intelligence (AI) companies urged
investors to be rational after their soaring share prices caught
regulators' attention.
Frenzy around the ChatGPT chatbot has spurred speculative
bets in China's stock market, pumping up AI firms such as TRS
Information Technology Co Ltd , Hanwang Technology Co
Ltd and CloudWalk Technology Co Ltd .
ChatGPT, developed by OpenAI and backed by Microsoft Corp , gives strikingly human-like responses to user queries.
The Securities Times in a front-page editorial highlighted
several technological concepts that spurred stock buying in
China, such as fifth-generation telecommunications networks
(5G), augmented reality (AR), virtual reality (VR) and
anti-virus garments - the excitement for which has died down.
Though some hotly chased concepts have been successful,
"many more new ideas haven't been commercialised, or require
more time to prove," the state-backed newspaper said.
"However, some people avidly speculate on fake concepts,
luring others into schemes of pumps and dumps. Investors
eventually end up in tears so they should not follow."
Companies developing ChatGPT-like concepts have also flagged
risks at the request of regulators after their prices shot up
amid intense interest in generative AI - technology that can
generate new data and media such as text and images.
Beijing Haitian Ruisheng Science Technology Ltd said its ChatGPT-style products and services do not yet generate
revenue, and that it has no relationship with OpenAI.
Though such technology "is on a long-term uptrend, we need
to analyse its speed of growth, and effect, in a cool-headed
way," it said in a filing in response to queries from the
Shanghai Stock Exchange.
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